Liberty Wealth Grouphttp://libertywealth.com.au
Just another WordPress siteWed, 13 Dec 2017 02:10:40 +0000en-UShourly1https://wordpress.org/?v=4.2.21Late or Overdue Tax Returnshttp://libertywealth.com.au/late-or-overdue-tax-returns/
http://libertywealth.com.au/late-or-overdue-tax-returns/#commentsFri, 13 Feb 2015 07:06:52 +0000http://btacs.com.au/?p=3441Penalties could apply. Some people may have forgotten to lodge a tax return or been too busy or it just hasn’t been a priority but whatever the reason for not lodging, the Taxation Office will require you to lodge a return every year if your income is over a certain threshold. If you have not... Read More

Penalties could apply.

Some people may have forgotten to lodge a tax return or been too busy or it just hasn’t been a priority but whatever the reason for not lodging, the Taxation Office will require you to lodge a return every year if your income is over a certain threshold.

If you have not lodged for some years you may receive a letter from the Taxation Office requesting you to lodge all outstanding returns or, before that happens you may just want to get your affairs in order. As the Taxation Office has the ability to charge penalties for late lodgement of taxation returns it is in your interest to complete any outstanding returns. Any penalty will only increase as more interest is applied each year. We can assist you to get up to date if you have not lodged a prior year’s tax return. Also we would apply to the Taxation Office to reverse any, or some of the penalties and interest.

Don’t Stress:

“It’s never too late to lodge your late or overdue tax returns”

We can help you to comply. Our degree qualified staff will assist you and may, by accessing the Taxation Office information be able to supply some of the necessary information for you. If information is not able to be found we can advise you on the best possible way to get your affairs in order.

Conversely you may be due a refund. Our firm will complete your Late or Overdue Tax Returns applying current legislation in order that you pay as little tax as is possible for your situation.

Frequently Asked Questions

Do you need to lodge a tax return?

Click hereto access the ATO calculator, which can tell you whether you need to lodge a tax return.

Are you an Australian resident for tax purposes?

Your residency status for tax purposes is important because it helps determine your liability to pay Australian income tax. Click hereto access the ATO website to start the determination of residency tool.

Can I claim motor vehicle expenses for transporting bulky tools and equipment between home and work?

Are you an employee who transports bulky tools and equipment between home and work? To get a tax deduction, it’s not enough to simply choose to carry a few tools – there are some simple rules that apply. Click hereto view the ATO video about what you can claim and the records you need to keep.

Can I claim overnight work-related expenses?

If you are an employee and you travel for work and stay away overnight, you may be able to claim a deduction for your costs. Click hereto view the ATO video about what you can claim and the records you need to keep.

What Our Clients Say

Great service 10/10

Danielle C

They were very helpful and answered all my questions

Belinda M

Really wonderful, very helpful and great communication

Elizabeth V

They are able to accomodate an appointment time with me and made the process of completing my tax simple and stress free

]]>http://libertywealth.com.au/late-or-overdue-tax-returns/feed/0ATO Warning: Malicious phone scam targets taxpayershttp://libertywealth.com.au/ato-warning-malicious-phone-scam-targets-taxpayers/
http://libertywealth.com.au/ato-warning-malicious-phone-scam-targets-taxpayers/#commentsThu, 03 Jul 2014 05:26:37 +0000http://btacs.com.au/?p=316127 June 2014 – ATO Warning: Malicious phone scam targets taxpayers The ATO is warning Australians to be on the lookout for a malicious scam that intimidates taxpayers into paying a fake tax debt over the phone. “This scam is particularly concerning because it threatens taxpayers with legal action or arrest if they do not... Read More

Malicious phone scam targets taxpayers

The ATO is warning Australians to be on the lookout for a malicious scam that intimidates taxpayers into paying a fake tax debt over the phone.

“This scam is particularly concerning because it threatens taxpayers with legal action or arrest if they do not immediately hand over money and their personal financial details over the phone,” said ATO Chief Technology Officer Todd Heather.

“As tax time approaches, scammers are becoming more cunning in their attempts to defraud the public and trick them into handing over money, their TFN or other personal information.

“We encourage people to contact us if they are worried they may have fallen victim to a scam call, email, SMS or a face-to-face scam,” Mr Heather said.

From time-to-time the ATO will send taxpayers emails, SMS messages or official social media updates alerting them to new services. Our messages will never request personal or financial information by SMS or email.

If people receive a call from the ATO and are concerned about providing their personal information over the phone, they should ask for the caller’s name and phone them back through the ATO’s switchboard on 13 28 69. If people think they may have fallen victim to a phone scam, contact the ATO on 1800 060 062 (8.00am–6.00pm, Monday to Friday).

Since 1 March 2014 the ATO has seen a spike in reports from the public of email and phishing scams from 9,368 to 11,344 compared with the same period last year.

To increase community awareness of scams the ATO has launched a new video campaign on ato.gov.au/identitycrime with helpful tips to protect personal information.

]]>http://libertywealth.com.au/ato-warning-malicious-phone-scam-targets-taxpayers/feed/0Home office expenses Running cost and Occupancy expenseshttp://libertywealth.com.au/home-office-expenses-running-cost-occupancy-expenses/
http://libertywealth.com.au/home-office-expenses-running-cost-occupancy-expenses/#commentsWed, 02 Jul 2014 07:38:47 +0000http://btacs.com.au/?p=3153Individual Tax Return Basics: Home office expenses Running cost and Occupancy expenses You may be entitled to claim deductions for home office expenses: Running costs may be deductible. Occupancy expenses are generally not deductible for an employee. You must keep records. Running costs If you perform some of your work from a home office, you may... Read More

Home office expenses Running cost and Occupancy expenses

If you perform some of your work from a home office, you may be entitled to a deduction for the costs you incur in running it, including:

for home office equipment, such as computers, printers and telephones, the cost (for items costing up to $300) or decline in value (for items costing $300 or more).

work-related phone calls (including mobiles) and phone rental (a portion reflecting the share of work-related use of the line) if you can show you
– are on call, or
– have to phone your employer or clients regularly while you are away from your workplace

heating, cooling and lighting

the costs of repairs to your home office furniture and fittings

cleaning expenses.

Occupancy expenses

As an employee, you are generally not able to claim a deduction for occupancy expenses, which include rent or mortgage interest, council rates, and house insurance premiums.

]]>http://libertywealth.com.au/home-office-expenses-running-cost-occupancy-expenses/feed/0Home office expenses Claiming a computer phone or other electronic devicehttp://libertywealth.com.au/home-office-expenses-claiming-computer-phone-electronic-device/
http://libertywealth.com.au/home-office-expenses-claiming-computer-phone-electronic-device/#commentsWed, 02 Jul 2014 07:18:29 +0000http://btacs.com.au/?p=3143Individual Tax Return Basics: Home office expenses – Claiming a computer, phone or other electronic device as a work-related expense If you’re an employee and required to use your computer, phone, tablet or other electronic device for work purposes, you may be able to claim a tax deduction. However, you must be able to demonstrate... Read More

]]>http://libertywealth.com.au/home-office-expenses-claiming-computer-phone-electronic-device/feed/0Four methods for claiming work-related car expenseshttp://libertywealth.com.au/four-methods-claiming-work-related-car-expenses/
http://libertywealth.com.au/four-methods-claiming-work-related-car-expenses/#commentsWed, 02 Jul 2014 06:41:20 +0000http://btacs.com.au/?p=3132Individual Tax Return Basics: Car Expenses – Four methods for claiming work-related car expenses You can choose which of the following four methods for claiming work-related car expenses that gives you the largest deduction for any car and choose different methods for different cars. Some adjustments to your claim may need to be made if the... Read More

Car Expenses – Four methods for claiming work-related car expenses

You can choose which of the following four methods for claiming work-related car expenses that gives you the largest deduction for any car and choose different methods for different cars. Some adjustments to your claim may need to be made if the car is jointly owned.

The four methods are:

Cents per kilometre method

12% of original value method

One-third of actual expenses method

Logbook method

If you use a borrowed car or a vehicle other than a car for work purposes, you can claim the costs you incur (such as fuel costs) as a travel expense. You can’t use any of the methods described here to calculate your claim.

Cents per kilometre method

Your claim is based on a set rate for each business kilometre.

You can claim a maximum of 5,000 business kilometres.

You don’t need written evidence but you need to be able to show how you worked out your business kilometres (for example, by producing diary records of work-related trips).

12% of original value method

Your claim is based on 12% of the original cost of your car or 12% of its market value at the time you first leased it.

The cost or value is subject to luxury car limits.

Your car must have travelled more than 5,000 business kilometres in the income year (or, if you used the car for only part of the year, it would have travelled more than 5,000 business kilometres had you used it for the whole year).

You don’t need written evidence but you need to be able to show how you worked out your business kilometres.

One-third of actual expenses method

Your car must have travelled more than 5,000 business kilometres in the income year (or, if you used the car for only part of the year, it would have travelled more than 5,000 business kilometres had you used it for the whole year).

You claim one-third of all your car expenses, including private costs (but excluding capital costs, such as the purchase price, the principal on any money borrowed to buy your car and the cost of any improvements).

For fuel and oil costs, you can keep receipts to work out the amounts or you can estimate them based on odometer records that show readings from the start and the end of the period you had the car during the year.

You need written evidence for all the other expenses for the car, as well as records that show the car’s engine capacity, make, model and registration number.

Logbook method

Your claim is based on the business-use percentage of the expenses for the car.

Expenses include running costs and decline in value but not capital costs, such as the purchase price of your car, the principal on any money borrowed to buy it and any improvement costs.

To work out your business-use percentage, you need a logbook and the odometer readings for the logbook period.

You can claim fuel and oil costs based on either your actual receipts or you can estimate the expenses based on odometer records that show readings from the start and the end of the period you had the car during the year.

]]>http://libertywealth.com.au/four-methods-claiming-work-related-car-expenses/feed/0Small business benchmarkshttp://libertywealth.com.au/small_business_benchmarks/
http://libertywealth.com.au/small_business_benchmarks/#commentsMon, 04 Nov 2013 14:26:46 +0000http://btacs.com.au/?p=1773Small business benchmarks Small business benchmarks update: Benchmarks have been updated with data from the 2010–11 financial year. Benchmarks are updated annually using the latest available income tax data. Small business benchmarks are financial ratios developed from information provided to us by businesses on their tax returns and activity statements. You can use the benchmarks... Read More

Small business benchmarks update:

Benchmarks have been updated with data from the 2010–11 financial year. Benchmarks are updated annually using the latest available income tax data.

Small business benchmarks are financial ratios developed from information provided to us by businesses on their tax returns and activity statements. You can use the benchmarks to help you compare your performance against similar businesses in your industry.

ATO uses benchmarks and other risk indicators to identify businesses that may be avoiding their tax obligations by not reporting some or all of their income. If a business does not have evidence to support their return the ATO may also use the benchmarks to determine income that has not been reported. For each industry the ATO highlights the benchmark that the ATO uses to predict income or turnover.

Benchmarks are published for businesses with different turnover ranges across more than 100 industries. They are generally published as a range, to recognise the variations that occur between businesses due to factors such as location and the businesses circumstances.

Businesses reporting outside the benchmarks may attract our attention. There may be reasons for this difference, such as higher costs or lower selling prices than others in the industry, but it may also be an indication that a business is not recording and paying tax on all its transactions, especially cash transactions.

If you find you are outside the benchmarks for your industry, check that you have correctly recorded and reported income and deductions for your business. To do this you should review your record-keeping practices to ensure they meet the legal requirements.

Find out more

For more information about how to meet your legal record-keeping requirements, including what records you need to keep for your daily business transactions, refer to Record keeping for small business.

End of find out more

The following types of benchmarks are published for the small business sector:

performance benchmarks – these provide financial ratios for different industries

input benchmarks – these show an expected range of income for tradespeople based on the labour and materials they use.

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

If you are looking for better service from more accessible business advisors who truly know you and your business, then click here to get in touch. We can arrange an obligation free meeting at our office or yours to discuss your situation. We look forward to being of assistance to you.

]]>http://libertywealth.com.au/member-btacs-b-informed-october-2013-newsletter/feed/0Common Tax Mistakes – Rental Propertieshttp://libertywealth.com.au/common-tax-mistakes-rental-properties/
http://libertywealth.com.au/common-tax-mistakes-rental-properties/#commentsTue, 30 Jul 2013 14:41:07 +0000http://btacs.com.au/?p=998Rental properties: Avoiding common mistakes The ATO has identified a number of common mistakes in the tax returns of rental property owners. To help you, ATO has compiled a list of what you should do and common mistakes to avoid including: Construction costs Initial repairs and capital improvements Interest expense Legal expenses Travel expenses Apportionment... Read More

The ATO has identified a number of common mistakes in the tax returns of rental property owners. To help you, ATO has compiled a list of what you should do and common mistakes to avoid including:

Construction costs

Initial repairs and capital improvements

Interest expense

Legal expenses

Travel expenses

Apportionment of rental expenses

Deductible borrowing expenses

Ownership interests

Construction costs

Certain types of construction costs, including extensions, alterations and structural improvements, can be claimed as capital works deductions. However, the purchase cost of the land on which a rental property is constructed cannot be claimed. Instead, the land forms part of the cost base for capital gains tax purposes.

Deductions can be claimed for the decline in value of some types of depreciating assets in residential rental properties – for example, curtains, blinds, dishwashers, refrigerators, stoves, television sets and hot water systems. However, construction costs are not depreciating assets.

Common mistakes include:

claiming the purchase cost of the land component as part of the cost of constructing the rental property

claiming construction costs as a decline in value of depreciating assets deduction instead of a capital works deduction

Initial repairs and capital improvements

Initial repairs to rectify damage, defects or deterioration that existed at the time of purchasing a property are capital expenditure and may be claimed as capital works deductions over either 25 or 40 years, depending on when the repairs were carried out.

Capital improvements (such as remodelling a bathroom or adding a pergola) should also be claimed as capital works deductions.

A common mistake is to claim initial repairs or capital improvements as immediate deductions.

Interest

If you use a loan facility for both investing and private purposes – for example, to purchase or renovate a rental property and to buy a motor boat – you cannot claim the interest expense on the private portion of the loan (the motor boat).

A common mistake is to claim a deduction for interest on the private portion of the loan.

Legal expenses

Conveyancing expenses incurred on the purchase and sale of your property are not deductible. Instead, these form part of the cost base for capital gains tax purposes.

A common mistake is to claim a deduction for conveyancing costs.

Travel expenses

Where travel related to your rental property is combined with a holiday or other private activities, you may need to apportion the expenses. You may be able to claim local expenses that are directly related to the property inspection and a proportion of accommodation expenses.

A common mistake is to claim a deduction for the cost of travel when the main purpose of the trip is to have a holiday and the inspection of the property is incidental to that.

Apportionment of rental expenses

In some situations, rental expenses may need to be apportioned. For example, if your holiday home is used by you, your friends or your relatives free of charge for part of the year, you are not entitled to a deduction for costs incurred during those periods.

It is also important that you have a clear intention to rent the property. If you made no attempt to advertise the property, or you set the rent so high it is unlikely a tenant could be found, we would find that you had no intention of renting your property and your rental claims would not be allowed.

Some common mistakes are:

claiming deductions for any expenses relating to your private use of the property

claiming deductions for a property that is not genuinely available for rent.

Deductible borrowing expenses

The correct way to claim borrowing expenses of more than $100 is to spread the deduction over five years, or over the term of the loan, whichever is less. If your borrowing expenses are $100 or less, you can claim the full amount in the income year they are incurred. If you claim your borrowing expenses as a deduction, you cannot include them in your cost base for capital gains tax purposes when you dispose of the property.

A common mistake is to claim all deductible borrowing expenses in the first year they are incurred.

Ownership interests

If you purchase a rental property as a co-owner and are not carrying on a rental property business, you must divide the income and expenses for the rental property in line with your legal interest in the property. This is despite any written or oral agreement between co-owners stating otherwise.

A common mistake occurs when a property is purchased by a husband and wife as co-owners and the income and expenses are not split in line with their legal interest in the property.

If you are looking for better service from more accessible business advisors who truly know you and your business, then click here to get in touch. We can arrange an obligation free meeting at our office or yours to discuss your situation. We look forward to being of assistance to you.